Core Difference Between Traditional and Cloud-based CRM and Benefits

Customer Relationship Management System is the need of the time for better performance and client satisfaction. Traditional CRMs are already in the market. Organizations that are working to increase their clientele and generate more revenue are looking to newer ways to work.

Such organizations are now using cloud-based CRM. Here we’ll discuss what is the cloud-based CRM? But before that to check its importance you should know that one of the tech giants Microsoft is offering certification named Microsoft Dynamics 365 MS-900 to understand cloud-based CRM and to work on it.

Difference Between Cloud-based and Traditional CRM:

CRM systems were started back in the 80s. Where they were used to add and retrieve information of the customers as contact management systems(CMS). But with the passage of time, the interest of business shifted and advanced CRMs came into being.

Now in the market, there are two types of CRMs available for businesses.

  • On-premise CRM Software
  • Cloud-based CRM Software

On-Premise CRM Software:

If CRM software is hosted on the company’s server, then it is known as On-premise CRM Software. This type of CRM software requires some additional things to work. For example, specific hardware, IT team, and maintenance.
This type of CRM software is more secure, highly customizable, but it is costly as regular updates and IT team will cost a huge amount continuously. You can’t deny updates. You have to install updates to keep it secure and up-to-date. otherwise, this type of CRM will not work properly.

Cloud-based CRM Systems:

Another type of CRM is cloud-based. This type of CRM contains all the data on a cloud server. This cloud server isn’t the property of the company but it is operated by a hosting company that is providing cloud-based CRM.

The company that provides cloud-based CRM systems take responsibility for you. You need not to worry about hardware up-gradation, maintenance, backup, and security. Your cloud-based CRM provider will take care of all these. You only have to pay a monthly subscription fee. was the first cloud-based CRM that was introduced back in 2007. Since then cloud-based CRMs are becoming popular due to their flexibility. Cloud-based CRMs are really convenient and helpful for employees and even for clients.
If you are thinking to move your business on cloud-based CRM, here are some benefits of cloud-based CRM that will surely help you in making a decision.

Quick to deploy:

Cloud-based CRM systems are fast to deploy. Doesn’t matter if your business is small or big. You only have to pay a subscription fee and that’s it. But without a certified professional it would be difficult for an organization to deploy it with your own infrastructure.

For this purpose, an organization must need a cloud-based CRM specialist such as MS-900 certified professional.

Cloud-based CRM systems are fast to deploy because there is no need to install any additional hardware or disrupt current infrastructure. All you need is a good internet connection and credentials for login.

Training employees for the new system will obviously take time but cloud-based CRMs are designed for almost every business, therefore, it will not take much time.

Easy to Upgrade:

As we have discussed, on-premise CRM systems require hardware to work. Upgrading these devices is costly and you will require an IT team to handle the whole infrastructure and up-gradation process. These processes are really inconvenient, time-consuming, and costly.

While using cloud-based CRM, there is no need for additional hardware, IT team, and other expenses. You can update to a newer version by simpling the downloading update sent to you by your cloud-based CRM provider.

Using cloud-based CRM will save you time and additional charges.

More Reliable:

Massive disruption can be caused if an on-premise customer relationship management system went offline. Businesses can’t do their work if the system is offline. Not only this due to difficult recovery processes, a business can lose confidential data of their clients.
Here is the one major benefit of using cloud-based CRM. Your cloud-based CRM provider will take care of the backup server so you may not get any disruption. They will also take backup daily, weekly or monthly depending on your subscribed package.
In the case of any failure, a business can easily recover their data.


Above mentioned are just 2 of many benefits that cloud-based CRM can provide. My suggestion is every business should say goodbye to on-premise CRM and should shift on cloud-based CRM.

This field is trending now and developing skills in this field can help individuals in grooming their careers. Just choose a cloud-based certification such as MS-900 and brighten your future.